The Hanoi Stock Exchange (HNX) has announced updates regarding the bond repayment status of No Va Thao Dien LLC, a subsidiary majority-owned (99.99%) by Novaland Group (stock code: NVL).
According to the schedule, August 15th was the deadline for principal and interest repayment of the NTDCH2227001 bond series, totaling over VND 2 trillion. However, No Va Thao Dien has only managed to repay slightly over VND 200 million through non-cash assets.
No Va Thao Dien LLC cited difficulties in securing sufficient funds and ongoing negotiations with investors regarding the remaining debt settlement as reasons for the delay.
The NTDCH2227001 bond series, issued on September 5, 2022, with a face value of VND 2.3 trillion and a 5-year maturity, pays interest semi-annually. Notably, the company failed to meet its interest payment obligation in March 2023.
No Va Thao Dien LLC is actively negotiating with investors to settle the outstanding debt.
In a separate disclosure to HNX, No Va Thao Dien LLC revealed several unusual developments. These include potential partial or full suspension of business operations, revocation of business registration certificates, and changes to previously disclosed information that may impact its debt servicing capabilities. The company also reported amendments to bond terms and conditions, as well as changes in bondholder representation.
Additionally, No Va Thao Dien disclosed administrative penalties imposed by regulatory authorities related to securities and stock market violations, as well as potential legal or criminal proceedings.
The company further announced its obligation to repurchase the NTDCH2227001 bonds, totaling VND 2.3 trillion, before maturity as mandated by TVSI Securities Company’s notice dated March 13, 2023, citing bond violations.
No Va Thao Dien also reported the results of a bondholder vote conducted in March-May 2023 regarding repayment options for the NTDCH2227001 series. The company was unable to reach an agreement with bondholders.
Earlier in June, No Va Thao Dien defaulted on over VND 2.172 trillion in principal and interest payments for this bond series. In 2024, the company also delayed payments of over VND 45 billion and remains delinquent on nearly VND 2.183 trillion in principal and interest.
Established in 2008, No Va Thao Dien LLC primarily operates in real estate and land use rights trading. In 2024, the company reported a net profit of over VND 14 billion, although accumulated losses still exceed VND 933 billion. As of year-end 2024, shareholders’ equity stood at VND 6.355 trillion, while total liabilities reached VND 12.773 trillion, a 5% increase year-over-year.
Another Novaland subsidiary, Unity Real Estate Investment LLC, faces a similar situation. The company was scheduled to repay VND 208 billion in principal for the UNICH2124001 bond series on October 14th but has only settled VND 34 billion to date. The remaining VND 174 billion is outstanding due to funding challenges.
Unity Real Estate Investment LLC stated that negotiations are underway with investors to repurchase the entire bond series, with a target completion date in November 2025. The UNICH2124001 bonds, issued on October 14, 2021, have a total face value of VND 416 billion.
Proceeds from this bond issuance were intended to increase operational capital and acquire a stake in Binh An Tourism Company, thereby gaining control of the Binh Chau – Phuoc Buu luxury eco-resort project in Xuyen Moc district, Ba Ria – Vung Tau province.
Founded in September 2016 as Nova Hospitality JSC with an initial charter capital of VND 50 million, Unity Real Estate Investment LLC is currently 99.98% owned by Novaland Group. Mr. Bui Dat Chuong, brother of Novaland Chairman Bui Thanh Nhon, serves as Chairman and legal representative of the company.
